Project Outcomes
In order to meet the climate goals set out in the Paris Agreement, it has been recognized that the deployment of carbon dioxide removal (CDR) technologies is necessary. Private investment is a critical financing instrument for CDR technologies to develop and scale. Since most CDR technologies are nascent, there persists a gap in public domain data used to inform investment decisions. The research explores the investment feasibility of biochar, an emerging sector that contributes to carbon sequestration while improving soil health, specifically focusing on the Global South.
Desk research and meetings with stakeholders in the biochar startup space were carried out to gain a deeper understanding of the technology used to produce biochar, current business models, and insights on the future of the global biochar industry. An investment thesis was developed which presents a landscape analysis of the biochar industry and insights used to help inform investment decisions in the space.
It was found that generally in the Global South (particularly South America and Africa), the sale of biochar carbon credits drives revenue as opposed to the sale of biochar itself. There are, however, successful cases of biochar companies diversifying revenue streams through the sale of bio-oil or through strategic marketing of biochar to farmers. Based on the sector’s anticipated growth, now is an opportune time to explore the biochar industry from an investment perspective. India’s biochar market is emerging, with its current infancy linked to a lack of market awareness. However, it is crucial to identify a strong, scalable, and sustainable business model, given the likelihood that the biochar startup space will become increasingly competitive by 2030.
Bush Control and Biomass Utilisation Project
